- 2024-07-31T00:00:00
- Company Research
* H1 2024 results: VTP announced its H1 2024 results with net revenue of VND9.6tn (USD377.2mn; -1% YoY) and NPAT-MI of VND152bn (USD5.9mn; -13% YoY), fulfilling 59% and 41% of our respective full-year forecasts. Net revenue beat our forecasts due to higher-than-expected trading revenue. Conversely, NPAT-MI trailed our forecast mainly caused by higher-than-expected SG&A expenses. We foresee potential downside risk to our 2024F forecasts, pending a more comprehensive review.
* Q2 2024 results: Net revenue inched up slightly by 1% YoY to VND4.9tn (USD193.9mn) as higher services revenue YoY offset lower trading revenue YoY (caused by VTP scaling down its mobile phone card selling business). However, NPAT-MI decreased 5% YoY to VND93bn (USD3.7mn) due to the lower service GPM YoY.
* Segmental performance in H1 2024:
- Services segment:
+ Service net revenue increased 25% YoY in H1 2024, which we believe to be driven by strong YoY growth in parcel volume. According to the Ministry of Information and Communications, total parcel volume in Vietnam increased by 35% YoY in H1 2024. In addition, total revenue from the top five e-commerce marketplaces in Vietnam (i.e., Shopee, Lazada, Tiktok Shop, Tiki, and Sendo) increased by 55% YoY in H1 2024, per Metric – a third-party market research firm.
+ Service GPM contracted by 1.9 ppts to 6.9% in H1 2024. We attribute this to (1) higher depreciation expenses YoY (due to incorporating depreciation expenses from the transportation vehicles acquired in 2023) and (2) higher outsourcing expenses YoY (including land rental fees for a new sorting center), in addition to the average Vietnamese RON-95 gasoline retail price increasing 4% YoY.
- Trading segment recorded net revenue declining 24% YoY in H1 2024 due to VTP scaling down its mobile phone card selling business starting from this year. On a QoQ basis, trading revenue dropped slightly by 1%, indicating slower-than-expected progress of scaling down this business.
* Profitability in H1 2024:
- Blended GPM contracted by 0.1 ppts YoY to 4.1% in H1 2024 driven by the service GPM declining by 1.9 ppts YoY, which outweighs a more favorable revenue mix (the revenue contribution of the services segment increased to 59% of total revenue in H1 2024 vs 47% in H1 2023).
- Blended EBIT margin fell by 0.3 ppts to 1.7% in H1 2024 due to 5% YoY higher SG&A expenses, which we attribute to VTP spending on developing the customer base for core businesses (delivery and logistics services).
VTP’s Q2 2024 & H1 2024 results
VND bn | Q2 2024 | YoY | H1 2024 | YoY | H1 2024/ Vietcap’s 2024F |
Net revenue | 4,945 | 1% | 9,619 | -1% | 59% |
Services | 2,987 | 23% | 5,686 | 25% | 44% |
Trading | 1,958 | -21% | 3,933 | -24% | 113% |
Gross profit | 230 | -3% | 397 | -4% | 48% |
Services | 227 | 0% | 392 | -1% | 48% |
Trading | 2 | -72% | 4 | -70% | 62% |
SG&A expenses | -122 | -3% | -233 | 5% | 53% |
EBIT | 108 | -3% | 163 | -14% | 42% |
PBT | 117 | -5% | 191 | -13% | 41% |
NPAT-MI | 93 | -5% | 152 | -13% | 41% |
Gross profit margin | 4.6% | -0.1 ppts | 4.1% | -0.1 ppts |
|
Services | 7.6% | -1.7 ppts | 6.9% | -1.9 ppts |
|
Trading | 0.1% | -0.2 ppts | 0.1% | -0.2 ppts |
|
EBIT margin | 2.2% | -0.1 ppts | 1.7% | -0.3 ppts |
|
NPAT-MI margin | 1.9% | -0.1 ppts | 1.6% | -0.2 ppts |
|
Source: VTP, Vietcap
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